We all know that it isnt easy for most millenials to buy a home these days in Metro Vancouver. But these 4 local homeowners born in the 1980's and 1990's showed that nothing is impossible if one wants to make some signicant sacrifices to their lifestyle to attain their impossible dream.
Tej Kainth expressed her relief that she made the decision to plunge into the market, as an executive of Tourism New Westminster, she had seen the transformation of the Royal City's downtown core in the past few years, so when an opportunity in 2012 for her to buy a 2-bedroom condo unit where completion is not till 2015, she knew she had plenty of time to prepare before she moved in. She already had a 10-percent down payment; to get to 15-percent, she borrowed from her mom and dad. Kainth began repaying her parents in regular increments while still lives at their home. Although she made sacrifices to cover strata fees and other expenses for her New West condo by not eating out as much and having close attention to her budget, but that's offset by the joy that comes from hosting her friends at her own home. She also walk to and from work, she rarely uses her car so it saves her money for gas and parking.
Samson Tam is one of those young Millennials homeowners with easy access to Skytrain. At 27, he's unto his 2nd home after buying a pre-sale unit on Main Street - Science World Station. Raised in Coquitlam, Tam moved to Ontario to earn his Engineering degree. During his coop terms in university, he saved as much as he could with the goal of buying a home in mind. Soon after we found a job in Toronto, he bought a small place after his parents provided a loan as a downpayment, he recalls "for the first 2 years of mortgage, it was really, really tough. My chequing account was never over $1000". After gaining more experience, he was hired as an engineer back here in Vancouver, his parents adviced him to get a small 660 sf unit near Science World. His adviced to young people without liabilities to save money if they're living rent-free with their parents. "People are blowing money on expensive dinners, partying, weekend things" Tam said.
Another Young Homeowner, 31 year old Samantha Stewart, said that she originally wanted to buy a place in downtown Vancouver but after market research, she pulled the trigger on a two bedroom resale in the Fraserhood area for under $400,000. She noted that the extra room will come in handy if she decides to get married one day and have a child. Stewart also acknowledged that she cant just fly away for a three-month vacation nowadays. Like other millennials, she also received help from her family for the downpayment of her unit which has kept her monthly mortgage of $1400 which is slightly higher rate than if she rents a basement suite.
25 year old Commerce Specialist Rita Lee, is moving with her 25-year old boyfriend into their first condo this October, her parents instilled in her the importance of putting her name on the title and own a property. They bought a small place in Gastown area, "we could have gotten a bigger place in Kingsway area but location is very important to us" says Rita.
The recent mortgage rules have upped the ante for first time home buyers. This month, the federal government declared that anyone with a downpayment of less than 20 percent of purchase price will only obtain government-backed mortgage insurance under this condition:they must qualify at whichever is higher, their contracted rate or at the Bank of Canada's 5 year fixed rate. Also, all homebuyers will face a "mortgage stress test" before getting qualify for a mortgage insurance. More info to come on the New Mortgage Rule.